My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
The Institutional Circle
Elite institutions (universities, pension funds) invest in private equity and hedge funds run by their own alumni, creating self-reinforcing wealth concentration loops.
Decision Rule
When evaluating institutional power, look for circular investment patterns where the institution funds the very people who later manage its money.
How It Works
Harvard educates future PE/hedge fund managers → Harvard's $50B endowment invests in their funds → Managers generate returns for Harvard → Cycle continues with increasing concentration of wealth and influence.
Failure Modes
Groupthink from too much institutional incest
Missing opportunities outside the network
Systemic risk from correlated investments
Public backlash against institutional advantages
Example Decision
“Before investing in or competing with institutional players, map their alumni networks and investment relationships to understand their true competitive advantages and potential blind spots.”